Determining the optimal financial or capital structure for a domestic U.S. firm requires in-depth analysis of a variety of factors. For multinational or global firms, the analysis can be much more complex than for domestic business organizations.
As a member of the finance team for the MNC Getting Bigger All The Time, Inc. (GBATT ), you have been asked by the Chief Financial Officer (CFO) to lead a general discussion on some of the complications and different risks in capitalizing an MNC and managing its financial structure. The CFO has asked that you specifically cover the risks associated with currency denominations, economic and legal issues, and the different government roles.
The CFO recommended a couple of sites for gathering information.
Organization for Economic Cooperation and Development (OECD) http://www.oecd.org
International Monetary Fund (IMF) http://www.imf.org
Using the module readings, University online library resources, the Internet, and the sources cited above, do the following:
Explain, with examples, how risks associated with currency denominations, economic and legal differences between countries, and the different governments? roles and attitudes toward business can affect MNCs? risks, capital structure and financial structure decisions.
Write your initial response in 300?500 words. Your response should be thorough and address all components of the discussion question in detail, include citations of all sources, where needed, according to the APA Style, and demonstrate accurate spelling, grammar, and punctuation